Is Amazon-Nvidia Pact A Threat For AMD?

Amazon’s (NASDAQ:AMZN) AWS announced few weeks ago that it will offer customers GPU-accelerated cloud, known as the AWS EC2 P2 instance. Amazon will use Nvidia’s (NASDAQ:NVDA) Kepler architecture-based K80 accelerators for overcoming the von Neumann bottleneck that poses a limitation on the throughput of CPUs after a certain extent. Nvidia’s market share will rise as a result of the Amazon-Nvidia pact, and AMD (NYSE:AMD) is expected to suffer revenue loss, at least in the short- to medium-term. However, AMD’s stock shrugged off the news and continued to surge post the release its third quarter fiscal 2016 financial results, which was more or less in line with consensus estimates. In this article, I will share my view regarding this divergence. Amazon-Nvidia Deal: A Threat for AMD? As I said, in the…